Growth Opportunities and Business Models Driving Sustainability in Pharmaceuticals Industry
Growth Opportunities and Business Models Driving Sustainability in Pharmaceuticals Industry
Eco-friendly Products, Design Innovation, and Multi-Stakeholder Partnerships Support Sustainability Initiatives The pharmaceutical (pharma) industry is undergoing significant regulatory changes resulting from the European Green Deal and the Paris Agreement. These changes require pharma companies to adopt more environmentally sustainable practices. With the increasing demand for drugs globally, pharma R&D and manufacturing infrastructure have grown, leading to a larger environmental footprint and rising greenhouse gas (GHG) emissions. As a result, regional environmental regulations have become more stringent in response to these developments. Additionally, post-COVID-19, pharma companies have become more aware of the importance of sustainability and are adopting measures to achieve their environmental, social, and corporate governance (ESG) goals. Companies are aligning their operations with changing regulations to stay competitive in the market. Notably, investors are increasingly focused on ESG credit ratings, preferring to fund companies based on their sustainability efforts, climate-related disclosures, and corporate social responsibility practices.
This study focuses on sustainability in the pharmaceutical industry and offers a detailed discussion on the implementation of the 6P framework, namely, policies, products, processes, people, partnerships, and platforms, by pharma value chain companies for their ESG strategy implementation and the fulfillment of United Nations Sustainable Development Goals (SDGs). The study includes key global and regional regulations and analyst perspectives on the policies and their implications for pharmaceutical industry participants and other healthcare stakeholders. The study discusses key trends and factors driving the growth of the sustainability program as well as restraints to adoption and their implications. The study identifies the most prevalent and emerging business models that are supporting industry stakeholders in enhancing their sustainability practices and maps the best practices to 6P implementation and SDG Goal fulfillment. Pharma industry companies to action in the sustainability space are provided, and the ESG programs are mapped against the 6P framework. Segmentation is based on the sustainability initiatives of pharma value chain companies across research (products), manufacturing (processes), and packaging and distribution (partnerships), covering detailed analysis of each segment's current focus, future implications, and prospects for stakeholders. The ESG focus, unique sustainability initiatives, and 6P implementation case studies of Johnson & Johnson, Astra Zeneca, Pfizer, Piramal Pharma Solutions, and Amcor are discussed. The study concludes with a detailed discussion of growth opportunities in the sustainability space.